SOURCE: Chanticleer Holdings, Inc.

Chanticleer Holdings, Inc. Logo

May 05, 2017 09:00 ET

Chanticleer Holdings Completes $6 Million Private Placement of Debentures and Warrants with Strategic Investors; Significantly Enhances Balance Sheet

Reduces Interest Rate on Majority of Debt From 12% to 8%

CHARLOTTE, NC--(Marketwired - May 05, 2017) - Chanticleer Holdings, Inc. (NASDAQ: HOTR) (NASDAQ: HOTRW) ("Chanticleer", or the "Company"), owner and operator of multiple restaurant brands in the U.S. and internationally, announced the completion of a private placement of debentures and share purchase warrants for total proceeds of $6 million with certain strategic investors. One lead participant, an existing shareholder, is a joint venture partner in the funding of newly created Little Big Burger restaurants. Similarly, another lead participant is a large equity owner and anticipated franchisee of new Little Big Burger restaurants.

The debentures will bear interest from the date of closing at 8% per annum, payable quarterly and will mature December 31, 2018. The investors will also receive warrants to purchase 12 million shares of common stock of the Company. The warrants will not be exercisable for six months following the Closing Date.

$5,000,000 of proceeds will be used to pay off, in full, the Florida Mezzanine Financing, which bears interest of 12% per annum. Of the remaining proceeds, $500,000 will be applied to transactional expenses and working capital, and $500,000 will be reserved for new store development, subject to approval by the investor representatives.

The Company has agreed to support an investor designee to serve on the Board of Directors.

Michael Pruitt, Chairman and CEO of Chanticleer Holdings, stated, "This financing reduces the interest rate on a large portion of our debt, from 12% to 8%, provides new working capital, and aligns the Company with strategic partners supporting the expansion of Little Big Burger. Over the past year we have driven organic growth, divested underperforming assets and significantly enhanced margins and profitability. This financing alleviates pressure on our balance sheet and provides an improved foundation upon which to drive growth in the best performing asset of our business."

T.R. Winston & Co. served as placement agent.

About Chanticleer Holdings, Inc.
Headquartered in Charlotte, NC, Chanticleer (HOTR), owns, operates and franchises fast casual and full service restaurant brands, including American Burger Company, BGR: The Burger Joint, Little Big Burger, Just Fresh and Hooters.

Forward-Looking Statements:
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